Help for Conflicted Home Buyers

Thinking about buying a home in the Salida area, but feel like you are getting conflicting advice? You're not the only one. First sales are up, then they're down. The market is showing signs of renewed movement, but then that movement proves only horizontal. Signs point to a recovery, then oil prices rise, creating uncertainty. Salida's market has retained a great deal of stability compared to others, but what does this all mean for the prospective home buyer and how can it affect your purchase?

You ask: If it's possible that prices could continue to fall, why should I buy now?

I say: WELL, the primary concern for folks selling a home is price, while your primary concern should be cost. This means you need to take into account your financing options and what your monthly payment will be - considering not just the price of the home, but also the interest rate on your mortgage. Waiting for prices to drop while mortgage rates rise could cost you more in the long run. Fannie Mae, Freddie Mac, the National Association of Realtors, PMI and the Mortgage Banks Association all project rising interest rates over the next several quarters. Meet with your mortgage professional to help you understand what an interest rate increase will cost you based on the size of your loan - that will help you make a decision.

You ask: If I buy now, when will I begin to see appreciation?

I say: APPRECIATION varies by market. To get a better idea we'll need to look at continuing pricing trends, however, there are indicators that suggest values will begin to rise nationally this year. New and existing home sales are up. The National Association of Realtors projects a 0.5% increase in 2011. Additional research shows experts think prices will start to increase in the second half of 2011, and will reach a cumulative appreciation of more than 10% by 2015.

You ask: Is buying really better than renting?

I say: WHY did you even begin to consider buying a home? The Fannie Mae National Housing Survey shows that the primary reasons people buy a home have nothing to do with money at all: 1) They want a place to raise and educate their children (and Salida, Colorado is a great place to do just that!) 2) They want a place where their family will feel safe. 3) They want to have plenty of living space, 4) and to have control over that space. Basically, people want autonomy, What non-financial benefits will you and your family gain from owning a home? Your answers should be the reason you decide whether or not to purchase.

For more information on buying a home in Salida, Buena Vista and the surrounding areas, please contact me directly at 719.221.4637 or via email at hale@weshillrealestate.com. Curious about what's on the market, check out our website: http://www.weshillrealestate.com/.

Why Use a Realtor?

To use a REALTOR or not? That seems to be the question. Does a REALTOR better serve a buyer or a seller? and in what ways? Of course the decision to engage a REALTOR rests solely with the buyer or seller, but here are a few advantages to working with an agent, no matter which side of the bargaining table you are sitting on.

First things first, a REALTOR is not a sales representative, rather a REALTOR will oook after your interests - and she/he is legally and ethically obligated to do just that.

For buyers considering whether or not to work with a real estate agent, consider the following:

1) Working with a REALTOR is free to the buyer. It won't make a difference in the purchase price of a house or property as the commission is paid by the seller. As a buyer you get the benefit of experienced representation at no cost, and how often does that happen?

2) An experienced real estate professional can use his or her knowledge of the market to provide long term investment advice, which basically means helping you get the most bang for your buck when you buy AND when you're ready to sell.

3) With a REALTOR you won't encounter any surprise costs. Over the course of a real estate contract there are costs incurred by both the buyer and seller that relate to things like inspections, loans, appraisals, title work and so on. An experienced agent will help outline these costs for you so that you don't have any surprises along the way.

4) Real estate agents have many resources to help you with your property search, including but not limited to access to the Multiple Listing Services, connnections with other agents, sellers, and the ability to uncover unlisted properties.

5) Whether it's the selection process, negotiations or closing one of the greatest advantages to having a REALTOR is the ability to get objective information. Buying and selling homes can be a very emotional process. As a third party, an agent can help you see the facts for what they really are, whether it's unexpected repairs, community information on utilities, zoning, repairs or what have you.

6) A real estate agent can help you do your due diligence when buying a property by referring you to qualified responsible professionals who can provide inspections, review title work, etc. A good inspection and a clean title (especially out here where there can be access and easement issues on rural properties) can resolve issues that might otherwise become a headache later.

For sellers considering whether or not to engage a real estate professional, consider the following:

1) One of the biggest advantages to a seller is that a REALTOR can provide up-to-date information as it relates to the current marketplace, price points, financing and the terms and conditions of competing properties, which helps you settle on the best price quickly with minimal hassles.

2) In addition to providing you with current information about the real estate market, a REALTOR also works as a marketing coordinator by making sure that your property is marketed to other real estate agents, the public, the MLS and other cooperating networks.

3) 82% of real estate sales are the product of agent contacts such as previous clients, referrals, friends, family and personal networks. Why not have that 82% on your side?

4) When you work with an agent you don't need to allow strangers into your home.

5) In the same way that an agent can help buyers retain their objectivity, so can they with sellers. A REALTOR can help objectively evaluate a buyer's proposal without compromising your marketing position. A sales contract is only the beginning of a transaction and there are likely to be unforeseen circumstances along the way. An agent can help you navigate things like unexpected repairs, title blight, and excessive paperwork to arrive at a successful closing.

Personally, I worked with a REALTOR when I bought my first home, and before I became one. Now if only I could engage a similar sort of representative when it comes to buying and selling automobiles! If you're interested in working with a qualified REALTOR in the Salida, Colorado area, you can reach me at: hale@weshillrealestate.com or direct at 719.221.4637. If you're curious about properties on the market, please visit our sebsite: http://www.weshillrealestate.com/.

K. Hale Chamblee

Broker/Associate

Direct: 719.221.4637

Email: Hale@WesHillRealEstate.com